Limited Resources

Maria Pajet, a regional sales representative for UniTec Systems, Inc., has been working about 80 hours per week calling on a total of 123 regular customers each month. Because of family and health considerations, she has decided to reduce her hours to a maximum of 160 per month. Unfortunately, this cutback will require Maria to turn away some of her regular customers or, at least, serve them less frequently than once a month. Maria has developed the following information to assist her in determining how to best allocate time:

Customer ClassificationLarge

BusinessSmall

BusinessIndividualNumber of customers83580Average monthly sales per customer$3,500$1,800$800Commission percentage5%8%10%Hours per customer per monthly visit5.03.02.5

a. Develop a monthly plan that indicates the number of customers Maria should call on in each classification to maximize her monthly sales commissions.

b. Determine the monthly commissions Maria will earn if she implements this plan.

In the first table, calculate the commission per customer and per hour for each customer classification.

In the second table, complete the monthly call/visit plan thatwould maximize Maria's monthly sales commissions. Then determine Maria's monthly commissions if she implements this plan.

Commission

per customerCommission

per hourLarge business$Answer

$Answer

Small business$Answer

$Answer

Individual$Answer

$Answer

Monthly Call/Visit PlanTotal number

of customers

Total number

of visit hours

Total

commissions

Large businessAnswer

Answer

Answer

Small businessAnswer

Answer

Answer

IndividualAnswer

Answer

Answer

Grand totals:$Answer

Answer

$Answer